Cost Acctg. (De Leon)

Topics: Variable cost, Fixed cost, Costs Pages: 5 (853 words) Published: June 18, 2015
Cost Accounting
Chapter 2 - Costs – Concepts and classification

Problem 1Problem 2
1. Direct9. Direct1. Manufacturing6. Manufacturing
2. Indirect 10.Direct2. Selling7. Administrative 3. Direct 11.Indirect3. Manufacturing8. Selling 4. Direct 12.Direct4. Selling9. Administrative 5. Direct 13.Direct5. Administrative10.Selling 6. Direct 14.Direct

7. Direct 15.Indirect
8. Indirect

Problem 3
1. VariableProductDirect
2. VariableProductDirect
3. FixedProductIndirect
4. VariableProductDirect
5. FixedProductIndirect
6. FixedPeriodIndirect
7. FixedPeriodIndirect
8. VariablePeriodDirect
9. FixedProductIndirect
10.FixedPeriodIndirect

Problem 4 – Bug Company
1. FixedPeriod6. VariablePeriod
2. FixedInventoriable7. VariableInventoriable
3. FixedInventoriable8. FixedInventoriable
4. VariableInventoriable9. FixedPeriod
5. FixedInventoriable10. FixedInventoriable

Problem 5 – Mighty Muffler, Inc.
a. P 60,000
b. P 60,000
c. P 37,500 = P50/muffler x 500 = P 25,000
750
d. P 50 x 1,000 = P 50,000
e. P 60,000 + P 25,000 = P 85,000
f. P 60,000 + P 50,000 = P 110,000
g. P 60,000/ 500 = P 120
h. P 60,000/750 = P 80
I, P 60,000/1,000 = P 60
j. P 50
k. P 50
l. P 50
m. P 120 + P 50 = P 170
n. P 80 + P 50 = P 130
o. P 60 + P 50= P 110

Problem 6 – JP Morgan
1. b, c. i
2. a, c, i
3. a, c, i
4. a, c. h
5. b. d, i
6. g
7. e, f (correction – should be when one additional loan application is processed) 8. b, d, i
9. a, c, i
10. b, c,

Problem 7 – Mother Goose Company
1. Prime costs - 530,000
2. Conversion cost-575,000
3 Inventoriable cost-860,000
4. Total period costs -305,000

Problem 8 –
a. c - fixed (total amount is constant)
b. a – variable (4,480/3,200 = 1.40; 6,300/4,500 = 1.40 per unit is constant) c. d - mixed ( 3,950/3,200 = 12.34; 5,250/4,500 = 1.16) total amount and amount per unit varies in relation to units sold)

Problem 9 - Blanche Corporation
`1. Direct materials usedP 32.00
Direct labor 20.00
Variable manufacturing overhead 15.00
Variable marketing 3.00
Total variable cost per unit 70.00
X No. of units produced and sold 12,000
Total variable costs per month P 840,000

2. Fixed manufacturing overheadP 6.00
Fixed marketing costs 4.00
Total fixed cost per unit 10.00
X No. of units produced and sold 12,000
Total fixed costs per month P 120,000

Problem 10
1. Direct materialsP 60.00
Direct labor 30.00
Variable manufacturing overhead 9.00
Total variable manufacturing cost per unitP 99.00

`2. Total variable manufacturing cost per unitP 99.00
Variable marketing and administrative 6.00
Total variable costs per unit 105.00

3. Total variable manufacturing cost per unitP 99,00
Fixed manufacturing overhead (30,000/1,200) 25.00
Full manufacturing cost per unit 124.00

4. Full manufacturing cost per unit124.00
Variable marketing and administrative 6.00
Fixed marketing and administrative 20.00
Full cost to make and sell per unit150.00

Problem 11 – Johnson Corporation

1. Variable cost per machine hour = 35,600 – 20,000
4,000 - 2,000
= 7.80 per machine hour

2. 4,000 hours 2000 hours
Total electricity expense 35,600 20,000
Less: Variable costs
( 4,000 x...
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